WESTLOCK – Cattle prices have gone up but it’s not translating into higher profits for producers due to increased costs, says a cattle expert.
Cattle prices were 53 per cent above the five-year average for cattle for slaughter and 70 per cent high for feeder stock, according to ATB Economics. In the past year alone, the price for slaughter cattle rose 12 per cent and feeder stock rose 16 per cent.
“The prices are really good,” said Travis Sekura, Manager of Vold, Jones & Vold Auction Co. in Westlock. “It’s great to see for the farmers but with the increase of everything else it’s not a whole lot of difference.”
Sekura said the prices have increased a lot in the past 10 months but points out they are just catching up with inflation.
“Their overhead has increased 30 to 40 per cent. It just kind of caught up with the economy is all it did. It’s still better. They do make a little bit but with the increase in fuel and parts it just helped with the increase in the early inflation.”
He said seven to eight years ago bailers cost about $30,000 and now they are selling for $120,000. You could buy a feeding tractor for $100,000 to $150,000 but now they are selling for $250,000.
“I would say in the farming industry, costs have increased 30 to 40 per cent since COVID.”
The herds in Alberta have also decreased, said Sekura.
“A lot of people went into grain farming and sold their cows. Lots of the elderly people getting up in age decided it was a good time to sell because prices were so good for them,” he added.
